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Android leader continues bullish tramp

Samsung Electronics Comp., Ltd. (KSC:005930) last year established itself as the new leader in both global smartphone sales and global feature phone sales.  The South Korean firm is also second only to California OEM Apple, Inc. (AAPL) in profitability.

Smartphones are not the only market dominated by Samsung.  The company also is on top of the heap in the DRAM and display markets.  Samsung's revenue came in just a bit lower than its 50T won forecast, at 47T won ($41.4B USD) in an earnings preview forecast aired late this week.

Earnings were driven, in part, by a highly successful international launch of the Galaxy S III smartphone.  Nho Geun-chang, analyst at HMC Investment Securities in Seoul, predicts sales of 19 million Galaxy S III smartphones for the June-ending quarter, in a statement to Reuters.  

He states, "Revenue is below our forecast, which suggests price pressure was more severe than had been expected in products such as televisions and home appliances.  Earnings will be stronger in the current quarter as sales of the high-end Galaxy S III will increase dramatically and drive the telecom division's earnings to above 5 trillion won."

The success is a welcome development given that the company is going through a leadership transition, with Kwon Oh-hyun taking the reins as chief executive officer this quarter.
 

Samsung is in rare air in the smartphone market.  Its Android counterparts HTC Corp. (TPE:2498) and Google Inc. (GOOGsubsidiary Motorola Mobility have stumbled, slipping to smaller market shares.

Both HTC and Samsung did share one common thread in their recent earnings reports, however.  Both companies were impacted by a weak Euro.

Samsung, however, is looking at aggressively moving to counteract these adverse affects.  An unnamed executive told Reuters, "Europe is our biggest consumer electronics market and we may have to initiate cost cuts and product price increases should the euro fall further from the current level.”

Our smartphones are flying off the shelves, with some outlets reporting 40-60 percent sales growth, but that's distorting the overall trading outlook which is more challenging due to the weak global economy and a weak euro."

In the U.S. Samsung did suffer some setbacks in the second calendar quarter with courts deciding to ban the Galaxy Tab 10.1 tablet and Galaxy Nexus smartphone, finding probable cause that they infringed on the patents of rival Apple, Inc. (AAPL).  The tablet was less of a blow, as it had struggled in sales, but the ban on the Galaxy Nexus, one of Samsung's prize models, was a major setback.

Samsung is currently appealing the Galaxy Nexus ban.

Source: Reuters



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RE: Not surprising...
By retrospooty on 7/7/2012 2:19:45 PM , Rating: 3
Ya, it's easy to see over hte past few years someone getting an Android 2.x device and being frustrated and turned off by the platform... But, Android 4 rocks, and 4.1 looks way better still. It has finally matured as a platform and is poised to have a great couple of years at least.


RE: Not surprising...
By V-Money on 7/7/2012 4:07:30 PM , Rating: 2
I agree completely, I had put ICS on my Nexus one back in January and it was a HUGE improvement. Now I am running Jellybean on my Galaxy Nexus and it is pretty awesome. Jellybean isn't as huge of an upgrade, but it is definitely nicer in a lot of ways. Its smoother, the taskbar is better, and google now is kind of cool.Its predictions are definitely getting to be more accurate. I will admit thought that I only really use the voice assisted feature to screw with people who have Siri :-)


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